If you are considering Selling a House and fail to state something that is of significance then you may be liable for charges in the future. These can include official fines, premature end of the contract, or you may even be facing a lawsuit.
In other words, you may maximize the price today but you may pay the price for that in the future.
The reason for this dates back to the 12th century when caveat emptor was first introduced. The premise was to let the buyer beware. In other words, do your homework before you choose. However, this has evolved over time and today means that while the buyer should beware, the seller has a duty to disclose anything materially relevant.
It doesn’t matter whether you are using the traditional real estate agent or the faster real estate auctioneer, you need to understand what you must disclose when selling a house:
Easements & Covenants
Easements and covenants either give someone else the right to use your land or they allow others to move across your land. In most cases, these types of agreements are for specific reasons. The agreements will usually automatically carry on even though you are selling the land.
If there is a lease on the property, whether the building maintenance or something less obvious, it is essential that this is disclosed to a buyer. They will need to continue paying the lease and abiding by any rules associated with the lease.
If your property is in a flood zone you will probably need to tell the seller before the deal is finalized. Equally, if you are in a bush fire risk zone it needs to be declared. The exact rules regarding these vary in different states so make sure you check the rules for your area.
It’s normal for people to modify the building they live in. It makes it appear more personalized and more practical. However, if any of the works taken needed planning permission you’ll need to have copies of all the agreements and planning approvals.
Alongside this, it’s not essential but telling your buyer your position on any neighbourly property extensions can help them if they have a dispute.
If you know of any defects in your property, specifically dampness, pests, and structural issues, you must tell your buyer.
While it is true that telling the buyer all these things could scare them off from purchasing your property. The truth is that you will, have a clear conscience. More importantly, providing you have fully disclosed everything you know about, there is no risk of the buyer coming after, you for money in a few months.
You should also note that it is rare for someone to pull out because of things you have disclosed. They will most likely use the information to renegotiate the price and ensure they have enough funds to complete any repairs or code violations. This is the simplest way for all parties involved.